WORCESTER REGIONAL TRANSIT AUTHORITY Report on …

WORCESTER REGIONAL TRANSIT AUTHORITY

Report on Examination of Basic Financial Statements an Additional Information

Year Ended June 30, 2020

WORCESTER REGIONAL TRANSIT AUTHORITY (A Component Unit of the Massachusetts Department of Transportation)

TABLE OF CONTENTS YEAR ENDED JUNE 30, 2020

Page(s)

INDEPENDENT AUDITORS’ REPORT 1 – 3

MANAGEMENT’S DISCUSSION AND ANALYSIS 4 – 8

BASIC FINANCIAL STATEMENTS: Proprietary Funds Financial Statements:

Statement of Net Position 9 – 10 Statement of Revenues, Expenses and Changes in Net Position 11 Statement of Cash Flows 12 – 13

Notes to the Financial Statements 14 – 29

REQUIRED SUPPLEMENTARY INFORMATION – UNAUDITED: Schedule of the Authority’s Proportionate Share of the Net Pension Liability 29 Schedule of the Authority’s Contributions to the Pension Plan 30 Schedule of Changes in Net OPEB Liability and Related Ratios 31 Schedule of Contributions to the OPEB Plan 32 Schedule of Investment Returns – OPEB Plan 32 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual 33 Notes to Required Supplementary Information 34 – 35

OTHER INFORMATION – UNAUDITED: Schedule of Net Cost of Service 36 Schedule of Net Cost of Service by Municipality 37 Allocation Basis for Net Cost of Service to Municipalities 38 Revenue and Cost of Transit by Bus Route 39 – 41 Details of Regular Demand Response Transit Services by Community 42 – 51

INDEPENDENT AUDITORS' REPORT

To the Administrator of Worcester Regional Transit Authority Worcester, Massachusetts

Report on the Financial Statements

We have audited the accompanying financial statements of the Worcester Regional Transit Authority (the “Authority”), a component unit of the Massachusetts Department of Transportation, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Worcester Regional Transit Authority Page 1 of 51 Basic Annual Financial Statements

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Authority as of June 30, 2020, and the respective changes in financial position and cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the schedules listed under the required supplementary information section in the accompanying table of contents be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context.

We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinion on the financial statements that comprise the Authority’s basic financial statements. The other information listed under the other information section in the accompanying table of contents is presented for purposes of additional analysis and are not a required part of the basic financial statements. The other information is the responsibility of management. We have applied certain limited procedures to the other information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.


Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 25, 2020 on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contract, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

Roselli, Clark & Associates Woburn, Massachusetts August 25, 2020


MANAGEMENT’S DISCUSSION AND ANALYSIS As the management of the Worcester Regional Transit Authority (the “Authority”), we offer readers of the financial statements this narrative overview and analysis of the financial activities of the Authority for the fiscal year ended June 30, 2020. We encourage readers to consider the information presented here in conjunction with their review of the basic financial statements, notes to the financial statements, required supplementary information and other information as listed in the table of contents. Financial Highlights The assets and deferred outflows of financial resources of the Authority exceeded its liabilities and

deferred inflows of financial resources at the close of the most recent fiscal year by nearly $81.8 (total net position).

The Authority continues to report a deficit in its unrestricted net position. The deficit in the unrestricted net position increased approximately $290,000 in fiscal year 2020 to approximately $20.7 million. This deficit is entirely attributable to long-term liabilities associated with the Authority’s net other postemployment benefits and pension liabilities, which total over $22.4 million at June 30, 2020.

The Authority’s long-term debt in the form of a transportation facility note payable decreased to $3.3 million at June 30, 2020. This long-term debt instrument is scheduled for final maturity in December 2020.

The Authority issued $9.6 million in revenue anticipation notes payable in fiscal year 2020, which are

set to mature in June 2021.

The Authority’s operations are funded through a state-required computation of net cost of service. Except for the establishment of a small, restricted reserve, the Authority’s funding cannot exceed its net cost of service. However, a deficit can result if funding is insufficient to cover expenses. The Authority incurred an approximate $291,000 deficit in its unrestricted funds, which was entirely the result of its accounting for other postemployment benefits and pensions under accounting principles generally accepted in the United States of America, or GAAP.

The COVID-19 pandemic and its associated public/private enterprise shutdowns affected the

Authority in a variety of ways. Passenger fares were waived beginning in March 2020, which resulted in an approximate $1.0 million budget shortfall. This shortfall was offset by expense reductions and the receipt of Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) funds. The Authority implemented a number of cost saving measures directly as well as through its contracted transit service operators in response to the COVID-19 pandemic, which included payroll reductions and many budgeted expenses were either deferred, reduced or eliminated entirely.

Overview of the Financial Statements The Authority, a component unit of the Massachusetts Department of Transportation, is a special purpose government engaged in a single busines-type activity. The Authority follows enterprise fund reporting. Accordingly, the financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Enterprise fund statements offer short-term and long-term financial information about the activities and operations of the Authority. These basic financial statements are presented in a manner similar to a private business using the accrual basis of accounting. This report consists of four parts – (1) management’s discussion and analysis; (2) the basic financial statements, (3) required supplementary information, and (4) other information.


Management’s discussion and analysis is intended to provide the user of these financial statements an objective and easily readable analysis of the Authority’s financial activities based on currently known facts, decisions or conditions. The statement of net position presents information on all of the Authority’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between those categories reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating. The statement of revenues, expenses and changes in net position presents information showing how the Authority’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected member communities’ assessments). The statement of cash flows presents information on the Authority’s cash receipts, cash payments and changes in cash resulting from operating, investing and financing activities. The basic financial statements are accompanied by notes to the financial statements, which explain information in the basic financial statements in more detail. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Authority’s budget to actual results and progress in funding long-term obligations to its employees and retirees. Finally, this report contains certain other information that is required by the Massachusetts Department of Transportation, or MassDOT. Statement of Net Position The condensed comparative statements of net position for the two most recent fiscal years are as follows:

June 30,2020

June 30,2019

DollarChange

PercentChange

Assets: Current and other assets 12,148,674$ 10,185,648$ 1,963,026$ 19.3% Capital assets, net 104,762,756 110,445,847 (5,683,091) -5.1%

Total Assets 116,911,430 120,631,495 (3,720,065) -3.1%

Deferred Outflows of Resources 2,320,664 1,488,699 831,965 55.9%

Liabilities: Long-term liabilities 22,431,060 24,482,331 (2,051,271) -8.4% Other liabilities 14,596,277 12,633,251 1,963,026 15.5%

Total Liabilities 37,027,337 37,115,582 (88,245) -0.2%

Deferred Inflows of Resources 453,623 579,470 (125,847) -21.7%

Net Position: Net investment in capital assets 101,462,756 103,845,847 (2,383,091) -2.3% Restricted 968,183 968,183 - 0.0% Unrestricted (20,679,805) (20,388,888) (290,917) 1.4%

Total Net Position 81,751,134$ 84,425,142$ (2,674,008)$ -3.2%


As noted earlier, net position may serve over time as a useful indicator of the Authority’s financial position. The Authority’s total net position decreased by approximately $2.7 million from the prior year. The largest portion of the Authority’s overall net position reflects its investment in capital assets including land, buildings and improvements, transportation equipment, machinery and equipment, less any related debt used to acquire those assets that is still outstanding. The Authority uses these capital assets to provide transit services to its member communities; consequently, these assets are not available for future spending. Although the Authority’s investment in its capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Restricted net position includes amounts restricted for extraordinary expenses. These amounts were accumulated in prior periods in accordance with a formula established under Massachusetts General Laws, or MGL. The use of these funds requires advance approval from MassDOT. The remaining category represents unrestricted net position, which currently has a deficit balance of approximately $20.7 million. This deficit is entirely attributable to long-term liabilities associated with the Authority’s net other postemployment benefits and pension liabilities, which total over $22.4 million at June 30, 2020. Statement of Revenues, Expenses and Changes in Net Position The condensed comparative statements of revenues, expenses and changes in net position for the two most recent fiscal years are as follows:

Dollar Percent 2020 2019 Change Change

Revenues: Operating revenues 2,406,123$ 3,306,954$ (900,831)$ -27.2% Nonoperating revenues: Federal and state assistance 18,974,684 17,207,018 1,767,666 10.3% Member communities' assessments 5,157,143 4,983,450 173,693 3.5% Interest income 5,439 42,656 (37,217) -87.2%

Total Revenues 26,543,389 25,540,078 1,003,311 3.9%

Expenses: Public transportation 25,262,472 24,046,394 1,216,078 5.1% Administrative and professional 1,194,278 1,081,113 113,165 10.5% Depreciation and amortization 6,350,055 7,135,197 (785,142) -11.0% Interest 251,187 379,883 (128,696) -33.9% Other expenses 126,369 128,385 (2,016) -1.6%

Total Expenses 33,184,361 32,770,972 413,389 1.3%

Change in Net Position Before Capital Contributions (6,640,972) (7,230,894) 589,922 -8.2%Capital Contributions 3,966,964 6,024,624 (2,057,660) -34.2%

Change in Net Position (2,674,008) (1,206,270) (1,467,738) 121.7%

Net Position: Beginning of year 84,425,142 85,631,412 (1,206,270) -1.4%

End of year 81,751,134$ 84,425,142$ (2,674,008)$ -3.2%

Fiscal Year Ended June 30,


Revenues – Total operating and nonoperating revenues increased approximately $1.0 million, or 3.9%, year-over-year. Operating revenues decreased nearly $901,000 year-over-year. The Authority suspended fare collections beginning in March 2020 as a result of the COVID-19 pandemic, which was the primary contributor to a nearly $875,000 decrease in passenger fare revenues. Federal and state operating assistance increased nearly $1.8 million year-over-year. This increase was due primarily to the decrease in operating revenues and budgeted increases in public transportation expenses. Expenses – Total expenses increased over $413,000, or 1.3%, year-over-year. This increase was due primarily to an approximate $1.2 million increase in public transportation expenses, which was offset by an approximate $785,000 decrease in depreciation and amortization expense and nearly $129,000 decrease in interest expense. Public transportation expenses increased 5.1% in fiscal year 2020. However, these costs were originally budgeted to increase approximately 6.7%. The Authority implemented a number of cost saving measures directly as well as through its contracted transit service operators in response to the COVID-19 pandemic. The decrease in depreciation and amortization expense is due to the timing of certain assets becoming fully depreciated. Additionally, recent fiscal years’ capital additions have been lower than in the fiscal periods immediately preceding. The decrease in interest expense is due to the continued repayments on long-term debt. Capital Asset and Debt Administration Capital Assets – The Authority’s investment in capital assets as of June 30, 2020 totaled approximately $104.8 million, net of accumulated depreciation. Net capital assets decreased nearly $5.7 million year-over-year as depreciation expense exceeded current year capital additions. Additional information on the Authority’s net capital assets can be found in the notes to the basic financial statements. Long-Term Debt – At June 30, 2020, the Authority’s total general long-term debt decreased $3.3 million to $3.3 million. The Authority’s sole long-term debt instrument is set for final maturity in December 2020. The Authority completed a $9.6 million revenue anticipation note sale in June 2020. This temporary note has a stated interest rate of 2.0% and is scheduled for repayment in June 2021. The Authority received and deferred approximately $105,000 in premiums associated with this temporary borrowing. As a result, the effective interest rate on this temporary borrowing is 0.88%. Additional information on the Authority’s long-term debt and temporary debt can be found in the notes to the basic financial statements.


Economic Factors and Next Year’s Budget

The Authority suspended the collection of passenger fares at the onset of the COVID-19 pandemic and continued this policy into fiscal year 2021. The Authority intends to use state and federal operating assistance to offset this revenue loss.

Member communities’ assessments are permitted to increase up to 2 ½% annually plus the

member communities’ proportionate share of any new services. The Authority has received federal awards totaling approximately $5.0 million in CARES Act

awards to assist it in delivery of public transit services in fiscal year 2021.

The above items were considered with the Authority set its preliminary fiscal year 2021 budget in May 2020. The fiscal year 2021 approved budgeted expenses totaled approximately $28.3 million, of which approximately $19.5 million of funding is expected from federal and state sources. Requests for Information This financial report is designed to provide a general overview of the Authority’s finances for all those with an interest in the Authority’s finances. Questions concerning any of the information provided in this report or request for additional financial information should be addressed to the Administrator of the Worcester Regional Transit Authority, 60 Foster Street, Worcester, Massachusetts 01608.


Assets: Current Assets: Cash and cash equivalents 2,254,101$ Receivables, net of allowances: Intergovernmental 2,269,267 Member communities 7,588,392 Other 19,420 Prepaid items 17,494

Total Current Assets 12,148,674

Noncurrent Assets: Land and land improvements 20,919,303 Depreciable capital assets, net 83,843,453

Total Noncurrent Assets 104,762,756

Total Assets 116,911,430

Deferred Outflows of Resources: Other postemployment benefits 782,302 Pensions 1,538,362

Total Deferred Outflows of Resources 2,320,664 (continued)


STATEMENT OF NET POSITIONJUNE 30, 2020

(A Component Unit of the Massachusetts Department of Transportation)



STATEMENT OF NET POSITIONJUNE 30, 2020


Liabilities: Current Liabilities: Accounts payable 1,474,092 Accrued payroll and related costs 9,648 Accrued expenses 43,533 Accrued interest 111,741 Unearned revenues 57,263 Short-term notes payable 9,600,000 Current portion of long-term debt 3,300,000

Total Current Liabilities 14,596,277

Noncurrent liabilities: Net other postemployment benefits liability 9,252,389 Net pension liability 13,178,671

Total Noncurrent Liabilities 22,431,060

Total Liabilities 37,027,337

Deferred Inflows of Resources: Other postemployment benefits 48,379 Pensions 405,244

Total Deferred Inflows of Resources 453,623

Net Position: Net investment in capital assets 101,462,756 Restricted for extraordinary expenses 968,183 Unrestricted (20,679,805)

Total Net Position 81,751,134$

(concluded)See accompanying notes to basic financial statements.


Operating Revenues: Passenger fares 2,223,205$ Other operating revenues 182,918

Total Operating Revenues 2,406,123

Operating Expenses: Public transportation 25,262,472 Administrative payroll and related expenses 634,298 Professional and other services 559,980 Depreciation and amortization 6,350,055 Other operating expenses 126,369

Total Operating Expenses 32,933,174

Operating Loss (30,527,051)

Nonoperating Revenues (Expenses): Federal assistance 6,603,105 State assistance 12,371,579 Member communities' assessments 5,157,143 Investment income 5,439 Interest expense (251,187)

Total Nonoperating Revenues (Expenses) 23,886,079

Income Before Capital Contributions (6,640,972)

Capital Contributions: Federal and state assistance 5,308,008 Member municipality and other 335,285 Transfer of Union Station projects (1,676,329)

Total Capital Contributions 3,966,964

Change in Net Position (2,674,008)

Net Position: Beginning of the year 84,425,142

End of the year 81,751,134$

See accompanying notes to basic financial statements.


STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONAS OF AND FOR THE YEAR ENDED JUNE 30, 2020



Cash Flows from Operating Activities: Receipts from passenger fares 2,232,388$ Receipts from other operating revenues 192,612 Payments to employees (344,287) Payments to vendors (25,665,485)

Net Cash Used in Operating Activities (23,584,772)

Cash Flows from Noncapital Financial Activities: Proceeds from federal and state operating grants 19,092,743 Proceeds from member communities' assessments 4,825,552

Net Cash Provided By Noncapital Financing Activities 23,918,295

Cash Flows from Capital and Related Financing Activities: Proceeds from capital grants 3,966,964 Proceeds from the issuance of short-term debt 9,600,000 Acquisition and construction of capital assets (666,964) Principal repayments on long-term debt (3,300,000) Repayments on short-term debt (8,000,000) Interest payments (180,321)

Net Cash Provided by Capital and Related Financing Activities 1,419,679

Cash Flow from Investing Activities: Investment income 5,439

Net Cash Provided by Investing Activities 5,439

Net Increase in Cash and Cash Equivalents 1,758,641

Cash and Cash Equivalents: Beginning of the year 495,460

End of the year 2,254,101$

(continued)


STATEMENT OF CASH FLOWSAS OF AND FOR THE YEAR ENDED JUNE 30, 2020




STATEMENT OF CASH FLOWSAS OF AND FOR THE YEAR ENDED JUNE 30, 2020


Reconciliation of Operating Loss to Net Cash Used in Operating Activities:

Operating Loss (30,527,051)$

Adjustments to Reconcile Operating Loss to Net Cash Used In Operating Activities:

Depreciation expense 6,350,055 Changes in assets, deferred outflows (inflows) of resources and liabilities: Receivables and other current assets 9,147 Deferred outflows (inflows) of resources (957,812) Accounts payable and other current liabilities 292,160 Net OPEB and pension liabilities 1,248,729

Net Cash Used in Operating Activities (23,584,772)$

(concluded)See accompanying notes to basic financial statements.


WORCESTER REGIONAL TRANSIT AUTHORITY (A Component Unit of the Massachusetts Department of Transportation) NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2020 I. Summary of Significant Accounting Policies

The basic financial statements of the Worcester Regional Transit Authority (the “Authority”) have been prepared in conformity with generally accepted accounting principles in the United States of America, or GAAP, as applied to state and local governments. GAAP is prescribed by the Governmental Accounting Standards Board (“GASB”), which is the primary standard-setting body for state and local governmental entities. The following is a summary of the more significant policies and practices used by the Authority. A. Reporting Entity

The Authority, a political subdivision of the Commonwealth of Massachusetts (the “Commonwealth”), provides public mass transportation in the City of Worcester and other communities within Worcester County. The Authority is primarily funded through passenger fares, member communities’ assessments and federal and state operating and capital subsidies. The Authority is governed by an advisory board (the “Board”) comprised of representatives from member communities. The Board appoints an administrator to manage the Authority’s day-to-day operations. While legally separate, the Authority is considered a component unit of the Commonwealth of Massachusetts Department of Transportation (“MassDOT”), which is a component unit of the Commonwealth, for financial reporting purposes.

B. Basis of Accounting and Financial Statement Presentation

The Authority is a special purpose government engaged in single business-type activity. The Authority’s financial statement are reported using the accrual basis of accounting. Revenues and expenses are when incurred, regardless of the timing of related cash flows. The Authority’s financial statements distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing mass transit services to the general public. The principal operating revenues are passenger fares. Operating expenses primarily consist of the cost of transit services provided by third parties (see below), salaries and wages, administrative expenses and depreciation. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The Authority is exempt from all federal and state income taxes and local property taxes. The cost of transit services provided by third parties primarily represents contracted services with First Transit, Inc. and its wholly-owned subsidiaries Central Mass Transit Management, Inc. and Paratransit Brokerage Services TM, Inc. These entities manage and operate the Authority’s fixed route and certain demand response transit services. The majority of the employees of Central Mass Transit Management, Inc. are subject to a collective bargaining agreement, which expires in August 2022.


C. Assets, Liabilities, and Deferred Outflows/Inflows of Resources and Net Position Deposits – The Authority’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. The Authority reports its investments at fair value. Receivables – Member communities’ assessments are generally collected subsequent to the year of assessment; accordingly, the Authority reports receivables from member communities’ assessments at year end. Additionally, intergovernmental receivables are reported at year end. Federal and State Contract Assistance – The Federal Transit Administration (“FTA”) approved the use of federal capital funds for operating expenses for the fiscal year ended June 30, 2020. Any amounts unallowed by the FTA will be ultimately due from the Commonwealth and the member communities. Generally, state contract assistance ranges between 50% and 75% of the Authority’s net cost of service (as defined under MassDOT guidelines), unless otherwise agreed upon by the parties. Member Communities’ Assessments – Annual increases to member communities’ assessments are limited to 2 ½% plus their proportionate share of new transit service costs incurred during the year. Prepaid Items – Certain payments to vendors reflect costs applicable to future accounting periods and may be recorded as prepaid items in the financial statements. Capital Assets – Capital assets, which include land, construction in-progress, buildings and improvements, transportation equipment (i.e., buses and vans) and office equipment are reported at historical cost. All material purchases and construction costs are capitalized at the date of acquisition or construction, respectively, if expected lives are deemed greater than two years. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Capital assets (excluding land and construction in-progress) are depreciated by the Authority on a straight-line basis over the following estimated useful lives:

Buildings and improvements 3 to 40 years Transportation equipment 5 to 12 years Office equipment and other 5 to 15 years

Revenue Recognition – Revenue is recognized when services are performed and the Authority has completed all performance obligations. Unearned revenue represents receipts for which the Authority has not met all revenue recognition criteria. Long-Term Debt – Long-term debt is reported as liabilities in these basic financial statements. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method, if material.

Deferred Outflows/Inflows of Resources – In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense) until then. The Authority reports deferred outflows of resources relative to other postemployment benefits (“OPEB”) and pension-related transactions. The Authority expects to recognize the reported


deferred outflows of resources relative to these personnel-related transactions over the next five years. In addition to liabilities, the statement of net position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Authority reports deferred inflows of resources relative to pension-related transactions and expects to recognize these amounts over the next five years against personnel-related transactions.

Net Position – Net position reported as net investment in capital assets includes capital assets, net of accumulated depreciation, less the principal balance of outstanding debt used to acquire capital assets. Unspent proceeds of capital related debt are not considered to be capital related debt. Restricted net position is comprised of a reserve for extraordinary costs and expenses, which is permissible under Section 6 of Massachusetts General Law (“MGL”) Chapter 161B. This reserve fund consists of annual payments made by the Authority in amounts not to exceed 3% of the prior year’s member communities’ assessments, provided that the total reserve fund cannot exceed 20% of the prior year’s member communities’ assessment. Expenditures from this fund are subject to the approval of the MassDOT. Net position that does not meet the definitions above is reported as unrestricted.

D. Postemployment Benefits Employees of the Authority are eligible to participate in a 457(b) deferred compensation plan. Certain employees of Central Mass Transit Management, Inc. are eligible to participate in a defined benefit pension plan and a retiree health and life insurance plan. These plans are accounted for and presented in the Authority’s financial statements as the Authority is responsible for funding these postemployment benefit plans. Each plan issues annual audited financial statements, which can be obtained by contacting the chief financial officer of Central Mass Transit Management, Inc., 42 Quinsigamond Avenue, Worcester, MA 01610.

E. Budgetary Data

An annual budget is adopted by the Authority on a basis that differs from GAAP. A budgetary comparison is included as required supplementary information to the Authority’s financial statements. A reconciliation between the budgetary basis of accounting and GAAP is provided in the required supplementary information.

F. Use of Estimates

The preparation of basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure for contingent assets and liabilities at the date of the basic financial statements and the reported amounts of the revenues and expenses during the fiscal year. Actual results could vary from estimates that were used.


II. Detailed Notes to All Funds A. Deposits

State laws and regulations require the Authority to invest funds only in preapproved investment instruments which include, but are not necessarily limited to, bank deposits, money markets, certificates of deposit, U.S. treasury bonds, repurchase agreements, and the State Treasurer’s investment pool, which is administered by the Massachusetts Municipal Depository Trust, or MMDT. In addition, the statutes impose various limitations on the amount and length of investments and deposits. Custodial Credit Risk: Deposits – In the case of deposits, this is the risk that in the event of a bank failure, the Authority’s deposits may not be returned to it. The Authority relies on depository insurance coverage at each financial institution to address this risk. At June 30, 2020, $2,586,833 in bank deposits were uninsured.

B. Receivables

Receivables as of June 30, 2020, net of applicable allowances for uncollectible accounts, were as follows:

Gross Amount

Allowance for Uncollectibles

Net Amount

Member communities' assessments 7,588,392$ -$ 7,588,392$ Intergovernmental: Commonwealth of Massachusetts 165,751 - 165,751 Federal 2,103,516 - 2,103,516 Other 19,420 - 19,420

9,877,079$ -$ 9,877,079$


C. Capital Assets Capital asset activity for the year ended June 30, 2020 was as follows:

During the fiscal year ended June 30, 2020, the Authority procured $1,676,329 in capital assets on behalf of the Worcester Redevelopment Authority through federal awards. These capital assets are not reflected in the activity above as the capital assets are not owned or under the control of the Authority.

D. Temporary Debt

The Authority is authorized to borrow on a temporary or short-term basis. Temporary borrowing activity for the year ended June 30, 2020 was as follows:

Beginning Balance (a) Increases Decreases

Ending Balance

Capital assets not being depreciated:Land and land improvements 20,919,303$ -$ -$ 20,919,303$

Capital assets being depreciated:Buildings and improvements 80,319,262 24,756 (19,794) 80,324,224 Transportation equipment 43,504,974 293,122 (1,588,803) 42,209,293 Office equipment and other 1,963,849 349,086 (18,671) 2,294,264

Total capital assets being depreciated 125,788,085 666,964 (1,627,268) 124,827,781

Less accumulated depreciation for:Buildings and improvements (7,821,894) (2,314,487) 19,794 (10,116,587) Transportation equipment (27,326,474) (3,701,943) 1,588,803 (29,439,614) Office equipment and other (1,113,173) (333,625) 18,671 (1,428,127)

Total accumulated depreciation (36,261,541) (6,350,055) 1,627,268 (40,984,328)

Total capital assets being depreciated, net 89,526,544 (5,683,091) - 83,843,453

Total capital assets, net 110,445,847$ (5,683,091)$ -$ 104,762,756$

(a) Certain reclassifications were made to the beginning balances to conform to current year presentation.

Type Interest

Rate Maturity

Date Beginning

Balance Additions Deductions Ending Balance

Revenue anticipation note 2.0% matured 8,000,000$ -$ (8,000,000)$ -$ Revenue anticipation note 2.0% 6/25/2021 - 9,600,000 - 9,600,000

8,000,000$ 9,600,000$ (8,000,000)$ 9,600,000$


E. Long–Term Obligations The Authority issues general obligation bonds and notes payable to provide funds for the acquisition and construction of major capital facilities. Additionally, the Authority incurs various other long-term obligations relative to associated personnel costs. The following table reflects the activity in the Authority’s long-term liability accounts:

Debt Service – The transportation facility note payable of $3,300,000 and associated interest expense of $41,745 are scheduled to mature on December 1, 2020. Authorized But Unissued Debt – At June 30, 2020, there were no amounts authorized but unissued for long-term debt.

III. Other Information

A. Deferred Contribution Plan

The Authority established a 457(b) deferred contribution plan for eligible employees. Under this plan, the Authority contributes between 4% and 7% of individual eligible employees’ compensation. The Authority recorded $37,742 in pension expense relative to its contributions to this plan in fiscal year 2020.

B. Defined Benefit Pension Plan

The union employees of Central Mass Transit Management, Inc. participate in a defined benefit pension plan administer by Central Mass Transit Management, Inc. (the “Pension Plan”) However, the financial responsibility and burden of the Pension Plan rests with the Authority and the employees’ union. Accordingly, the Authority’s proportionate share of the pension expense, net pension liability and associated deferred outflows and inflows of resources related to the Pension Plan are accounted and reported on the Authority’s financial statements. Stand-alone financial statements are issued annually. Current membership in the Pension Plan as of December 31, 2019 (the measurement and reporting date of the pension plan) was as follows:

Beginning Ending Due WithinDescription of Issue Balance Additions Deductions Balance One Year

Notes from direct borrowings and placements 6,600,000$ -$ (3,300,000)$ 3,300,000$ 3,300,000$ Net pension liability 12,531,909 3,546,101 (2,899,339) 13,178,671 - Net other postemployment benefits liability 8,650,422 1,753,696 (1,151,729) 9,252,389 -

Total Long-Term Obligations 8,650,422$ 1,753,696$ (1,151,729)$ 9,252,389$ -$

Active plan members 141 Inactive vested plan members 37 Retirees and beneficiaries 141 Disabled 23

342


In a January 2, 1996 letter, the Pension Benefit Guaranty Corporation ruled that the Pension Plan is a governmental pension plan within the meaning of Section 4021(b)(2) of the Employee Retirement Income Security Act of 1974, or ERISA. Accordingly, as a governmental pension plan, the Pension Plan is not subject to the minimum funding requirements of ERISA as contained in Internal Revenue Code Section 412. Pension Plan Benefits – The Pension Plan provides for regular retirement benefits as well as accidental disability and preretirement death benefits. Participants are completely vested in the Pension Plan after five years’ creditable service. Under the terms of the Pension Plan, the normal retirement age is 65. The Pension Plan permits early retirement at age 55 with a minimum of five year’s credited service. Participants’ retirement benefits vary depending on years of credited service, age at retirement and retirement option selected by participants at the time of their retirement. The minimum annual retirement benefit is $1,440. Participants are eligible for disability retirement benefits if after completing five years’ creditable service a participant is determined to be totally and permanently disabled. Disability benefits vary depending on a disabled participants age at the time of disability. The minimum annual disability benefit is $1,380. Beneficiaries of participants who died and who have not yet vested in the Pension Plan will be paid the deceased participant’s accumulated contributions plus interest. For vested participants, the surviving beneficiary may elect a variety of retirement benefit options, which are determined based on the age and creditable service of the deceased participant. Contributions – Employee contribution rates vary based on when an employee commenced their creditable service. Active participants with less than five year’s creditable service or while in a salary progression contribute 9.5% of their total compensation; all other participants contribute 11.5% of their total compensation. Central Mass Transit Management, Inc. matches all employee contributions dollar-for-dollar. Employer contributions for the year ended December 31, 2019 totaled $1,104,955. Net Pension Liability – At June 30, 2020, the Authority reported a net pension liability of $13,178,671. The net pension liability was measured as of December 31, 2019 by an actuarial valuation as of that date. A number of changes were made to the actuarial assumptions in the December 31, 2018 valuation study versus the previous valuation study. The most significant assumption change included a decrease in the discount rate from 8.00% to 7.75%. The Authority’s proportion of the net pension liability is based on a projection of its long-term share of contributions to the Pension Plan. Through collective bargaining, the Authority and union equally share in the Pension Plan’s future obligations. Fiduciary Net Position – The elements of the Pension Plan’s basic financial statements (that is, all information about the Pension Plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources and fiduciary net position) can be found in the Pension Plan’s full financial statements as of and for the year ended December 31, 2019, which can be obtained by contacting Central Mass Transit Management, Inc. The Pension Plan’s fiduciary net position was determined using the accrual basis of accounting. The Pension Plan’s accounting records are maintained on a calendar-year basis. Contributions from employers and employees are recognized in the period in which they become due pursuant to formal commitments or contractual requirements. Benefit payments (including refunds of employee contributions) are recorded when incurred, regardless of the timing of payment.


Investments are reported at fair value; fair value is determined as the price one would receive in an orderly transaction between market participants at a measurement date. Pension Expense – The Authority recognized $1,519,353 in pension expense in fiscal year 2020. Deferred Outflows of Resources and Deferred Inflows of Resources – At June 30, 2020, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The deferred outflows and inflows of resources are expected to be recognized in the Authority’s pension expense (benefit) as follows:

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience 352,625$ 188,930$ Changes of assumptions 568,870 -

Net difference between projected and actual earnings on pension plan investments - 214,027 Changes in proportion share of contributions - 2,287 Contributions subsequent to the measurement date 616,867 -

1,538,362$ 405,244$

Year ended June 30,

2021 751,195$ 2022 138,053 2023 144,905 2024 83,670 2025 15,295

1,133,118$


Actuarial Valuation – The measurement of the Pension Plan’s total pension liability is developed by an independent actuary. The latest actuarial valuation was performed as of December 31, 2019. The significant actuarial assumptions used in this actuarial valuation included:

The long-term expected rate of return on Pension Plan investments was determined using a building-block method in which best-estimate ranges of expected future rates of return (expected returns, net of Pension Plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future rates of return by the target asset allocation percentage and by adding expected inflation. Target allocations by asset class to achieve the long-term expected rate of return on Pension Plan investments as of December 31, 2019 were:

Discount Rate – The discount rate used to measure the total pension liability in the December 31, 2019 actuarial valuation report was 7.75%, which was a reduction from the previous discount rate of 8.0%. The projection of cash flows used to determine the discount rate assumed plan member contributions were made at the current contribution rate and that employer contributions will be made at rates equal to the actuarially determined contribution rates and the member rate. Based on those assumptions, the Pension Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. A twenty-five-year funding schedule was developed by the Pension Plan’s independent actuary for the year ended December 21, 2019 based on the funding goal as described in the collective bargaining agreement.

Actuarial cost method Entry age normalInvestment rate of return 7.75% per year, net of expenses (previously 8.0%)Projected salary increases 3.00% per yearCost of living adjustments 3% on first $12,000 of benefitsEmployee termination 6.6% at age 20 grading to 0.3% at age 55; based on Table T-3

of the Actuary's Pension Handbook (less rates of mortality from 1951 Group Annuity Mortality Table)

Retirement age - males 2.0% at age 55 grading to 100% at age 70Retirement age - females 5.5% at age 55 grading to 100% at age 70Annual rate of disability 0.02% at age 20 grading up to 0.62% at age 60Mortality RP-2000 Mortality Table with improvements through 2015

using Scale AA for both pre-retirement and post-retirementPre-death benefit Calculated using the aforementioned mortality, interest and

termination assumptions and on the assumption that 100% of the participants have spouses; male participants are assumed to have spouses three years younger and female participants are assumed to have spouses three years older

Asset Class Target

Allocation

Fixed income mutual funds 35%Domestic equity mutual funds 40%International equity mutual funds 25%


Sensitivity Analysis – The following presents the Authority’s proportionate share of the net pension liability calculated using the discount rate of 7.75% as well as its proportionate share of the net pension liability using a discount rate that is one percentage point lower or higher than the current rate:

C. Other Postemployment Benefits The union employees of Central Mass Transit Management, Inc. participate in a postemployment medical and life insurance benefit plan administer by Central Mass Transit Management, Inc. (the “OPEB Plan”). However, the financial responsibility and burden of the OPEB Plan rests with the Authority. Accordingly, the Authority accounts for and reports the OPEB expense, net OPEB liability and associated deferred outflows and inflows of resources related to the OPEB Plan. Stand-alone financial statements are issued annually. Current membership in the OPEB Plan was as follows:

Contributions – Retiree and survivor contributions to medical insurance vary depending on age, creditable service and retirement date and are collectively bargained. The monthly medical insurance benefit an individual retiree can receive cannot exceed their monthly pension benefit. The Company pays 100% of life insurance costs. The face values of the life insurance benefit range from $2.000 to $3,000 dependent on the retiree’s years of creditable service. Central Mass Transit Management, Inc. is responsible for the cost of administering the OPEB Plan. Net OPEB Liability – The Authority’s net OPEB liability was determined using an actuarial valuation as of June 30, 2020. The components of the net OPEB liability of the Authority at June 30, 2020 were as follows:

Current Discount Rate 1% Decrease Current Rate 1% Increase

7.75% 14,935,694$ 13,178,671$ 11,672,651$

Net Pension Liability At

Active employees 154 Retirees and survivors 177

331

Total OPEB liability 11,694,946$ Plan fiduciary net position 2,442,557

Net OPEB liability 9,252,389$

Plan fiduciary net position as a percentage of the total OPEB liability 20.9%


The total OPEB liability in the most recent actuarial valuation was determined using the following key actuarial assumptions applied to all periods included in the measurement, unless otherwise specified:

The long-term expected rate of return on OPEB Plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB Plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and benchmark indices for each major asset class are summarized in the following table:

Discount Rate – The discount rate used to measure the total OPEB liability was 7.5%.

Actuarial cost method Entry age normalAsset valuation method Market value on the reporting dateInvestment rate of return 7.5% per year, net of expenses (formerly 8.0%)Healthcare cost trend rates 4.5% per yearParticipation 65% of future retirees are assumed to participate in the retiree

medical insurance plan; 100% of future retirees are expected to participate in the life insurance plan

Marital status 50% of employees are assumed to have a covered spouse at retirement; wives are assumed to be three years younger than their husbands

Mortality The 2008 IRS Static Mortality Table; for period after disability retirement, the RP-2000 Combined Healthy with improvements based on MP-2015

Asset Class Target

Allocation Benchmark Index

Fixed income mutual funds 40% Barclays AggregateDomestic equity mutual funds 40% Russell 3000International equity mutual funds 20% MSCI ACWI excluding USA


Changes in the Net OPEB Liability – The following table summarizes the changes in the net OPEB liability for the year ended June 30, 2020:

Sensitivity Analyses – The following presents the Authority’s net OPEB liability calculated using the current discount rate of 7.5% as well as what the Authority’s net OPEB liability using a discount rate that is 1% lower or higher than the current rate:

The following presents the Authority’s net OPEB liability calculated using the current healthcare trend rate assumption of 4.5% as well as what the Authority’s net OPEB liability using a healthcare trend rate that is 1% lower or higher than the current rate:

Total OPEB Liability

(a)

Plan Fiduciary Net Position

(b)

Net OPEB Liability(a) - (b)

Balances at June 30, 2019 10,793,554$ 2,143,132$ 8,650,422$

Changes for the year:Service cost 113,434 - 113,434 Interest 789,892 - 789,892 Experience differences 747,858 - 747,858 Employer contributions - 946,221 (946,221) Net investment income - 102,996 (102,996) Benefit payments (749,792) (749,792) -

Net changes 901,392 299,425 601,967

Balances at June 30, 2020 11,694,946$ 2,442,557$ 9,252,389$

Increase (Decrease)

1% Decrease Current Rate 1% Increase 7

7.50% 10,413,716$ 9,252,389$ 8,097,871$

CurrentRate

Net OPEB Liability At

1% Decrease Current Rate 1% Increase

4.50% 8,038,368$ 9,252,389$ 10,396,813$

CurrentRate

Net OPEB Liability At


OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB – For the year ended June 30, 2020, the Authority recognized OPEB expense of $830,310. Deferred outflows of resources and deferred inflows of resources related to OPEB at June 30, 2020 were reported as follows:

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

D. Risk Financing

The Authority is exposed to various risks of loss related to torts; theft, damage, and destruction of assets; errors and omissions; and natural disasters for which the Authority carries commercial insurance. The amount of claim settlements has not exceeded insurances coverage in any of the previous three years.

E. Commitments and Contingencies

General – The Authority may be party to certain legal terms that arise during the normal course of operations. These legal claims are subject to many uncertainties, the outcome of which is not always predictable. The Authority does not believe any such material claims currently exist. Environmental – The former property owner of the land the Authority’s maintenance and operations facility is located was required to complete certain environmental remediation at no cost to the Authority, which was completed in fiscal year 2019. The Authority is responsible for ongoing monitoring. No provision has been made in these financial statements for any environmental matters as the Authority does not believe that its ongoing monitoring costs and efforts are material at this time.

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience 629,992$ 48,379$ Changes of assumptions 97,383 - Net difference between projected and actual earnings on OPEB Plan investments 54,927 -

782,302$ 48,379$

2020 173,150$ 2021 169,446 2022 146,164 2023 143,467 2024 101,696

733,923$

Year Ended June 30:


Grants – Other amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal and state governments. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the Authority expects such amounts, if any, to be immaterial.

F. Economic Dependence

Operating assistance from the Commonwealth and federal government totaled approximately47% and 25%, respectively, of total fiscal year 2020 operating and nonoperating revenues.

IV. Implementation of New GASB Pronouncements

A. Current Year Implementations

None.

B. Future Year Implementations

In January 2017, the GASB issued GASB Statement No. 84, Fiduciary Activities. The objectiveof the Statement is to improve guidance regarding the identification of fiduciary activities foraccounting and financial reporting purposes and how these activities should be reported. Asamended, the provisions of this Statement are effective for financial reporting periods beginningafter December 15, 2019 (fiscal year 2021). The Authority is currently evaluating whetheradoption will have a material impact on the financial statements.

In June 2017, the GASB issued GASB Statement No. 87, Leases. This Statement redefines themanner in which long-term leases are accounted and reported. As amended, the provisions of thisStatement are effective for financial reporting periods beginning after June 15, 2021 (fiscal year2022). The Authority is currently evaluating whether adoption will have a material impact on thefinancial statements.

In June 2018, the GASB issued GASB Statement No. 89, Accounting for Interest Cost IncurredBefore the End of a Construction Period. This statement establishes accounting requirements forinterest costs incurred before the end of a construction period. As amended, the provisions of thisStatement are effective for financial reporting periods beginning after December 15, 2020 (fiscalyear 2022). The Authority is currently evaluating whether adoption will have a material impacton the financial statements.

In August 2018, the GASB issued GASB Statement No. 90, Majority Equity Interest – AnAmendment of GASB Statements No. 14 and No. 61. The objective of this Statement is toimprove the consistency and comparability of reporting a government’s majority equity interest ina legally separate organization and to improve the relevance of financial statement informationfor certain component units. As amended, the provisions of this Statement are effective forfinancial reporting periods beginning after December 15, 2019 (fiscal year 2021). The Authorityis currently evaluating whether adoption will have a material impact on the financial statements.


In May 2019, the GASB issued GASB Statement No. 91, Conduit Debt Obligations. The objective of this Statement is to standardize the reporting of conduit debt obligations by issuers by clarifying the existing definition of conduit debt obligation, among other matters. As amended, the provisions of this Statement are effective for financial reporting periods beginning after December 15, 2021 (fiscal year 2023). The Authority is currently evaluating whether adoption will have a material impact on the financial statements.

In March 2020, the GASB issued GASB Statement No. 93, Replacement of Interbank Offered Rates. The objective of this Statement is to address accounting and financial reporting implications that result from the replacement of an interbank offered rate. As amended, the provisions of this Statement are effective for financial reporting periods beginning after June 15, 2021 (fiscal year 2023). The Authority is currently evaluating whether adoption will have a material impact on the financial statements.

In March 2020, the GASB issued GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The objective of this Statement is to improve financial reporting by addressing issued related to public-private and public-public partnership arrangements. The provisions of this Statement are effective for financial reporting periods beginning after June 15, 2022 (fiscal year 2024). The Authority is currently evaluating whether adoption will have a material impact on the financial statements.

In May 2020, the GASB issued GASB Statement No. 96, Subscription-Based Information Technology Arrangements. The objective of this Statement is to address accounting for subscription-based information technology arrangements to government end users based on the standards established in Statement No. 87, as amended. The provisions of this Statement are effective for financial reporting periods beginning after June 15, 2022 (fiscal year 2024). The Authority is currently evaluating whether adoption will have a material impact on the financial statements.

In June 2020, the GASB issued GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The objective of this Statement is to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution OPEB plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans that meet the definition of a pension plan and for benefits provided through those plans. The provisions of this Statement are effective for financial reporting periods beginning after June 15, 2021 (fiscal year 2023). The Authority is currently evaluating whether adoption will have a material impact on the financial statements.


2020 2019 2018 2017

Proportion of the net pension liability 50.0% 50.0% 50.0% 50.0%

Proportionate share of the net pension liability 13,179$ 12,532$ 12,138$ 11,979$

Covered payroll 10,191$ 9,784$ 9,006$ 9,419$

Proportionate share of the net pension liability as a percentage of its covered payroll 129.3% 128.1% 134.8% 127.2%

Plan fiduciary net position as a percentage of the total net pension liability 23.8% 22.5% 25.5% 24.3%

2016 2015

Proportion of the net pension liability 50.0% 50.0%

Proportionate share of the net pension liability 11,737$ 11,011$

Covered payroll 9,125$ 8,239$

Proportionate share of the net pension liability as a percentage of its covered payroll 128.6% 133.6%

Plan fiduciary net position as a percentage of the total net pension liability 24.5% 27.2%

This schedule is presented to illustrate the requirement to show information for ten years. However, until a fullten-year trend is completed, information is presented for those years in which information is available.

See accompanying independent auditors' report.

Year Ended June 30,


REQUIRED SUPPLEMENTARY INFORMATIONPENSION PLAN

SCHEDULE OF THE AUTHORITY'S PROPORTIONATE SHARE

(dollar amounts are in thousands)OF THE NET PENSION LIABILITY



2020 2019 2018 2017

Actuarially determined contribution 989$ 1,038$ 891$ 969$ Contributions in relation to the actuarially- determined contribution 1,104 1,053 1,031 962

Contribution deficiency (excess) (115)$ (15)$ (140)$ 7$

Covered payroll 10,191$ 9,784$ 9,006$ 9,418$

Contributions as a percentage of covered payroll 10.8% 10.8% 11.4% 10.2%

2016 2015

Actuarially determined contribution 937$ 783$ Contributions in relation to the actuarially- determined contribution 877 809 Contribution deficiency (excess) 60$ (26)$

Covered payroll 9,125$ 8,239$

Contributions as a percentage of covered payroll 9.6% 9.8%

This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is completed, information is presented for those years in which information is available.


SCHEDULE OF THE DISTRICT'S CONTRIBUTIONS TO THE PENSION PLAN(dollar amounts are in thousands)

Year Ended June 30,


REQUIRED SUPPLEMENTARY INFORMATIONPENSION PLAN



2020 2019 2018 2017

Total OPEB Liability: Service cost 113$ 108$ 115$ 110$ Interest 790 782 810 792 Experience differences 747 - (136) - Changes in assumptions - - 274 - Benefit payments (749) (805) (711) (667)

Net Change in Total OPEB Liability 901 85 352 235

Total OPEB Liability: Beginning of year 10,794 10,709 10,357 10,122

End of year (a) 11,695$ 10,794$ 10,709$ 10,357$

Plan Fiduciary Net Position: Contributions 946$ 950$ 891$ 842$ Net investment income 103 130 110 138 Benefit payments (749) (770) (711) (661)

Net Change in Plan Fiduciary Net Position 300 310 290 319

Plan Fiduciary Net Position: Beginning of year 2,143 1,833 1,543 1,224

End of year (b) 2,443$ 2,143$ 1,833$ 1,543$

Net OPEB Liability — End of Year (a) - (b) 9,252$ 8,651$ 8,876$ 8,814$

Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 20.9% 19.9% 17.1% 14.9%

Covered payroll 9,803$ 9,072$ 9,072$ 7,715$

Net OPEB Liability as a Percentage of Covered Payroll 94.4% 95.4% 97.8% 114.2%

This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trendis completed, information is presented for those years in which information is available.


Year Ended June 30,


REQUIRED SUPPLEMENTARY INFORMATIONOTHER POSTEMPLOYMENT BENEFITS PLAN

SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS(dollar amounts are in thousands)



2020 2019 2018 2017

Actuarially determined contribution 961$ 1,251$ 1,282$ 1,247$ Contributions in relation to the actuarially- determined contribution 924 950 891 842

Contribution deficiency (excess) 37$ 2,201$ 391$ 405$

Covered payroll 9,803$ 9,072$ 9,072$ 7,715$

Contribution as a percentage of covered payroll 9.4% 10.5% 9.8% 10.9%

Notes to Schedule:

Asset valuation methodActuarial cost methodInvestment rate of returnHealthcare cost trend ratesParticipation

Mortality

2020 2021 2019 2018

Annual money-weighted rate of return, net of investment expenses 4.95% 6.77% 6.73% 10.60%

This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten year trendis completed, information is presented for those years in which information is available.



REQUIRED SUPPLEMENTARY INFORMATIONOTHER POSTEMPLOYMENT BENEFITS PLAN

SCHEDULE OF CONTRIBUTIONS

Year Ended June 30,

(dollar amounts are in thousands)


Year Ended June 30,

4.5% per year

The 2008 IRS Static Mortality Table; for the period after disability retirement, the RP-2000 Combined Healthy with improvements based on MP-2015

SCHEDULE OF INVESTMENT RETURNS

Market value on the reporting dateEntry age normal7.5% per year (formerly 8.0%)

65% of future retirees are assumed to participate in the retiree medical plan; 100% of future retirees are expected to participate in the life insurance plan


Actual PositiveBudgetary (Negative)

Original Final Amounts Variance Revenues: Federal operating assistance 5,853,768$ 6,220,028$ 6,439,932$ 219,904$ Commonwealth of Massachusetts: Contract assistance 12,323,497 12,183,457 12,183,457 - Other operating assistance 72,500 268,151 233,018 (35,133) Member communities' assessments 5,213,134 5,108,036 5,157,143 49,107 Passenger fares 3,278,600 3,270,484 2,223,204 (1,047,280) Advertising and other 238,555 237,763 211,813 (25,950)

Total Revenues 26,980,054 27,287,919 26,448,567 (839,352)

Expenditures: Fixed route transit services 19,211,830 19,241,819 19,205,972 35,847 Demand response 4,215,505 4,238,249 3,990,267 247,982 Brokerage and customer service 1,576,808 1,709,673 1,364,213 345,460 Administration 1,398,887 1,470,212 1,378,428 91,784 Management fee 379,574 376,778 376,778 - Interest 197,450 251,188 132,909 118,279

Total Expenditures 26,980,054 27,287,919 26,448,567 839,352

Net Budget -$ -$ -$ -$

See notes to required supplementary information.



REQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

FOR THE YEAR ENDED JUNE 30, 2020

Budgeted Amounts

BUDGET AND ACTUAL



WORCESTER REGIONAL TRANSIT AUTHORITY (A Component Unit of the Massachusetts Department of Transportation)

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION AS OF AND FOR THE YEAR ENDED JUNE 30, 2020

An annual budget is legally adopted by the Authority. The Authority’s Administrator oversees the budgeting process, which is approved annually by the Advisory Board.

The Authority’s annual budget is prepared on a basis of accounting other than GAAP. The actual budgetary amounts column of the Schedule of Revenues, Expenditures and Changes in Fund Balance – Budgetary Basis is presented on a budgetary basis to provide meaningful comparison to the adopted budget. A complete reconciliation is provided below:

Basis of Accounting Differences

Fund Perspective Differences Total

Revenues — budgetary basis 26,448,567$ Bond interest -$ 118,278$ 118,278 Revenue recognition - (23,456) (23,456)

Revenues — GAAP basis -$ 94,822$ 26,543,389$

Expenditures — budgetary basis 26,448,567$ Depreciation and amortization -$ 6,350,055$ 6,350,055 Bond interest - 118,278 118,278 Expense recognition - (23,456) (23,456) Accounting for pensions 334,828 - 334,828 Accounting for other postemployment benefits (43,911) - (43,911)

Expenditures — GAAP basis 290,917$ 6,444,877$ 33,184,361$


Actual Revenues – Budgetary Basis:

Actual Expenses – Budgetary Basis:

Federal Government

24.3%

Commonwealth of Massachusetts

46.9%

Member Municipalities

19.5%

Passenger Revenues

8.4%Advertising and

Other…

Administrative5.2% Management Fee

1.4%

Debt Service0.5%

Fixed Route Transit Service72.6%

Brokerage / Customer Service

5.2%

Demand Response Transit Services

15.1%


I. Operating CostsA. RTA Administrative Costs (Excluding Depreciation) 1,320,646$ B. Purchased Services

Fixed Route 20,021,679 Demand Response 5,240,793 Brokerage -

C. Debt Service 251,187 D. Less GASB Statement #68 and #75 Adjustment (290,917)

Total Operating Costs 26,543,388$

II. Federal Operating Assistance:A. FTA Operating 6,484,828 B. Other Federal 118,277

Total Federal Assistance 6,603,105

III. RevenuesA. Operating:

1. Fare Box Revenue 2,223,205 B. Brokerage Service Reimbursement - C. Other State Assistance 188,122 D. Other Revenues:

1. Advertising 157,622 2. Parking - 3. Sale of Capital Assets 13,296 4. Interest Income 5,438 5. Miscellaneous 12,000 2,599,683

Total Revenues 9,202,788

IV. Net Operating Deficit (I-II-III) 17,340,600

V. Adjustments:

A. Extraordinary Expenses (Not to Exceed 3% of PriorYear's Local Assessment) -

VI. Net Operating Deficit After Adjustment 17,340,600

VII. Net Cost of Service FundingA. Local Assessments 5,157,143 B. State Contract Assistance 12,183,457

1. Less: Adjustment For Exceeding 2 1/2%Cap on Prior Year Net Operating Expenses -

C. State Contract Assistance to be Funded 12,183,457 1. Less: Forward Funding Made by DOT

Before July 1, 12,183,457

D. Balance Requested From (Due To) State -$

VIII. Unreimbursed Deficit (Surplus) (IV-VLA-VIC) -$


WORCESTER REGIONAL TRANSIT AUTHORITY(A Component Unit of the Massachusetts Department of Transportation)

OTHER INFORMATIONSCHEDULE OF NET COST OF SERVICE


Increase (Decrease) Increase (Decrease) 2020 Actual Assessments

Cherry Sheet Estimates

in Cherry Sheet Estimates

2019 Actual Assessments

in Actual Assessments

Auburn 190,298$ 195,948$ (5,650)$ 195,948$ (5,650)$ Barre 5,931 6,792 (861) 6,792 (861) Boylston 1,604 1,375 229 1,375 229 Brimfield 5,408 5,475 (67) 5,475 (67) Brookfield 12,015 11,732 283 11,732 283 Charlton 102,780 64,815 37,965 64,815 37,965 Clinton 12,242 12,124 118 12,124 118 Douglas 5,408 6,024 (616) 6,024 (616) Dudley 17,137 18,930 (1,793) 18,930 (1,793) East Brookfield 16,600 16,501 99 16,501 99 Grafton 95,146 83,946 11,200 83,946 11,200 Holden 16,136 14,219 1,917 14,219 1,917 Holland 3,030 3,126 (96) 3,126 (96) Leicester 144,822 128,919 15,903 128,919 15,903 Millbury 103,456 106,012 (2,556) 106,012 (2,556) New Braintree 553 649 (96) 649 (96) Northborough 20,552 23,374 (2,822) 23,374 (2,822) Northbridge 139,707 122,548 17,159 122,548 17,159 North Brookfield 1,633 2,687 (1,054) 2,687 (1,054) Oakham 1,308 2,286 (978) 2,286 (978) Oxford 142,108 132,517 9,591 132,517 9,591 Paxton 543 1,017 (474) 1,017 (474) Princeton 2,951 1,718 1,233 1,718 1,233 Rutland 16,797 14,620 2,177 14,620 2,177 Shrewsbury 82,470 86,313 (3,843) 86,313 (3,843) Southbridge 97,061 74,504 22,557 74,504 22,557 Spencer 108,839 106,614 2,225 106,614 2,225 Sturbridge 34,477 38,734 (4,257) 38,734 (4,257) Sutton 9,301 10,262 (961) 10,262 (961) Wales 138 611 (473) 611 (473) Warren 13,846 12,596 1,250 12,596 1,250 Webster 117,376 101,793 15,583 101,793 15,583 Westborough 81,013 93,379 (12,366) 93,379 (12,366) West Boylston 63,260 64,805 (1,545) 64,805 (1,545) West Brookfield 5,265 5,570 (305) 5,570 (305) Worcester 3,485,912 3,410,915 74,997 3,410,915 74,997

5,157,123$ 4,983,450$ 173,673$ 4,983,450$ 173,673$



OTHER INFORMATIONSCHEDULE OF NET COST OF SERVICE BY MUNICIPALITY


(A) (B) (C) (D)

Revenue From Operating Net Loss Loss RouteNet Cost of

Demand Response Basis of Allocation

Of Net 2020 2019 Operations Cost (Gain) Percentage Transit Service Cost of Service Allocation

Auburn 7.5022% 12.0136% 58,355$ 777,841$ 719,486$ 4.0018% 160,047$ 879,533$ 3.8565%Barre 27,406 27,406 0.1202%Boylston 7,420 7,420 0.0325%Brimfield 25,003 25,003 0.1096%Brookfield 5.2027% 10.6243% 1,867 35,885 34,018 0.1892% 21,515 55,533 0.2435%Charlton 0.2563% 1.3679% 1,013 395,313 394,300 2.1931% 80,737 475,037 2.0829%Clinton 56,582 56,582 0.2481%Douglas 25,005 25,005 0.1096%Dudley 79,204 79,204 0.3473%East Brookfield 8.5293% 7.7205% 6,591 77,275 70,684 0.3931% 6,031 76,715 0.3364%Grafton 1.8456% 3.3796% 2,186 118,443 116,257 0.6466% 24,289 140,546 0.6163%Holden 74,586 74,586 0.3270%Holland 14,011 14,011 0.0614%Leicester 3.9998% 6.9509% 25,364 634,138 608,774 3.3860% 60,566 669,340 2.9349%Millbury 6.1122% 9.3691% 26,421 432,267 405,846 2.2573% 72,304 478,150 2.0966%New Braintree 2,560 2,560 0.0112%Northborough 94,979 94,979 0.4165%Northbridge 1.7391% 3.2325% 3,198 183,884 180,686 1.0050% - 180,686 0.7923%North Brookfield 7,560 7,560 0.0331%Oakham 6,039 6,039 0.0265%Oxford 3.3005% 4.4707% 21,072 638,454 617,382 3.4339% 39,406 656,788 2.8799%Paxton 2,516 2,516 0.0110%Princeton 13,644 13,644 0.0598%Rutland 77,643 77,643 0.3404%Shrewsbury 9.7930% 13.0853% 32,996 336,933 303,937 1.6905% 77,222 381,159 1.6713%Southbridge 11.4544% 33.9731% 18,809 164,207 145,398 0.8087% 303,191 448,589 1.9670%Spencer 7.9050% 11.5575% 31,995 404,742 372,747 2.0732% 130,294 503,041 2.2057%Sturbridge 159,357 159,357 0.6987%Sutton 42,998 42,998 0.1885%Wales 647 647 0.0028%Warren 63,986 63,986 0.2806%Webster 10.6554% 14.3661% 44,385 416,548 372,163 2.0700% 170,322 542,485 2.3787%Westborough 1.9087% 2.9603% 2,003 104,938 102,935 0.5725% 6,589 109,524 0.4802%West Boylston 20.6519% 29.0504% 59,631 288,744 229,113 1.2743% 63,256 292,369 1.2820%West Brookfield 24,330 24,330 0.1067%Worcester 11.3680% 16.1138% 1,706,570 15,012,067 13,305,497 74.0048% 2,805,781 16,111,278 70.6442%

10.2012% 14.8678% 2,042,456$ 20,021,679$ 17,979,223$ 100.0000% 4,827,026$ 22,806,249$ 100.0000%



Ratio Of Revenue To Operating Costs

FIXED ROUTE TRANSIT SERVICE


OTHER INFORMATIONALLOCATION BASIS FOR NET COST OF SERVICE TO MUNICIPALITIES


For The Years Ended June 30,

Route Number Description

Revenue From

OperationsOperating

CostLoss (Gain) Per Route

Ratio of Revenue To

Operating Cost

Revenue From

OperationsOperating


Ratio of Revenue To

Operating Cost

Auburn25 Auburn Ind. Park-Canterbury St.-Southbridge St. -$ -$ -$ - 7,156$ 95,159$ 88,003$ 7.520%27 Auburn Mall - Main Street 46,869 483,130 436,261 9.701% 72,918 458,692 385,774 15.897%29 Southbridge - Charlton 11,486 294,711 283,225 3.897% 17,359 257,172 239,813 6.750%

Total Auburn 58,355 777,841 719,486 7.502% 97,433 811,023 713,590 12.014%

Brookfield33 Brookfield - East Brookfield - Spencer - Leicester 1,867 35,885 34,018 5.203% 3,378 31,795 28,417 10.624%

Charlton29 Southbridge - Charlton 1,013 395,313 394,300 0.256% 2,726 199,279 196,553 1.368%

East Brookfield33 Brookfield - East Brookfield - Spencer - Leceister 6,591 77,275 70,684 8.529% 5,301 68,661 63,360 7.721%

Grafton

A Northbridge Walmart- Blackstone Valley Shoppes 740 18,497 17,757 4.001% 670 15,761 14,097 4.251%B New Village - Rockdale - Grafton MBTA Station 1,446 99,946 98,500 1.447% 2,741 85,167 82,426 3.218%

Total Grafton 2,186 118,443 116,257 1.846% 3,411 100,928 97,517 3.380%

Leicester19 Webster Square - Clark University - Main St. 5,119 147,155 142,036 3.479% 7,930 138,257 130,327 5.736%33 Brookfield - East Brookfield - Spencer - Leicester 20,245 486,983 466,738 4.157% 31,927 435,153 403,226 7.337%

Total Leicester 25,364 634,138 608,774 4.000% 39,857 573,410 533,553 6.951%

Millbury4 Shoppes at Blackstone Valley-Millbury St.-Millbury Ctr 26,421 432,267 405,846 6.112% 39,990 426,829 386,839 9.369%

NorthbridgeA Northbridge Walmart -Blackstone Valley Shoppes 1,224 64,841 63,617 1.888% 1,999 55,252 53,253 3.618%B New Village - Rockdale - Grafton MBTA Station 1,974 119,043 117,069 1.658% 3,066 101,439 98,373 3.023%

Total Northbridge 3,198 183,884 180,686 1.739% 5,065 156,691 151,626 3.232%

2020 2019

REVENUE AND COST OF TRANSIT SERVICE BY BUS ROUTEOTHER INFORMATION





Revenue From

OperationsOperating


Ratio of Revenue To

Operating Cost

Revenue From

OperationsOperating


Ratio of Revenue To

Operating Cost

2020 2019



Oxford42 Auburn - Oxford - Webster 21,072$ 638,454$ 617,382$ 3.300% 24,918$ 557,367$ 532,449$ 4.471%

Shrewsbury

15 Shrewsbury Center - Shrewsbury St. - Route 9 32,996 336,933 303,937 9.793% 41,939 320,504 278,565 13.085%

Southbridge29 Southbridge - Charlton 18,809 164,207 145,398 11.454% 34,288 100,927 66,639 33.973%

Spencer19 Webster Square - Clark University - Main St. 3,399 53,639 50,240 6.337% 5,193 59,963 54,770 8.660%33 Brookfield - East Brookfield - Spencer - Leicester 28,596 351,103 322,507 8.145% 38,039 314,098 276,059 12.111%

Total Spencer 31,995 404,742 372,747 7.905% 43,232 374,061 330,829 11.557%

Webster42 Auburn - Oxford - Webster 44,385 416,548 372,163 10.655% 52,257 363,753 311,496 14.366%

WestboroughWest Westborough Shuttle 2,003 104,938 102,935 1.909% 3,465 117,047 113,582 2.960%

West Boylston30 West Boylston - Grove St. - West Boylston St. 59,631 288,744 229,113 20.652% 92,541 318,553 226,012 29.050%

Worcester1 Providence Street - Dillon St. 54,926 524,491 469,565 10.472% 67,646 538,164 470,518 12.570%2 Tatnuck Square - Pleasant St. 44,446 634,100 589,654 7.009% 68,704 624,816 556,112 10.996%3 Worcester State - Highland St.-EcoTarium-North HS 32,284 383,388 351,104 8.421% 45,846 354,116 308,270 12.947%4 Shoppes at Blackstone Valley-Millbury St.-Millbury Ctr. 27,926 468,039 440,113 5.967% 39,192 400,976 361,784 9.774%5 Grafton St. - South Plaza - Blithewood 58,927 495,707 436,780 11.887% 92,763 542,194 449,431 17.109%6 West Tatnuck - Chandler St. 53,260 407,710 354,450 13.063% 66,664 384,766 318,102 17.326%7 Washington Heights 124,843 1,019,249 894,406 12.249% 177,914 954,232 776,318 18.645%8 Park Avenue Connector 7,994 307,743 299,749 2.598% 155 7,091 6,936 2.186%

11 Fair Plaza - Vernon Hill - Greenwood St. 178,010 1,360,871 1,182,861 13.081% 246,407 1,243,292 996,885 19.819%12 Grafton St. - Southwest Commons 3,479 30,813 27,334 11.291% -




Revenue From

OperationsOperating


Ratio of Revenue To

Operating Cost

Revenue From

OperationsOperating


Ratio of Revenue To

Operating Cost

2020 2019



14 Showcase Cinemas - QCC - Burncoat St. 52,417$ 587,919$ 535,502 8.916% 92,039$ 770,859$ 678,820$ 11.940%15 Shrewsbury Center - Shrewsbury St. - Route 9 15,753 280,078 264,325 5.625% 24,741 279,837 255,096 8.841%16 Lincoln Plaza - Hamilton Street - Lake Ave. 64,730 816,361 751,631 7.929% 90,412 819,551 729,139 11.032%19 Webster Square - Clark University - Main St. 161,952 898,383 736,431 18.027% 225,505 864,033 638,528 26.099%23 East Mountain St. - Lincoln St. 128,715 1,008,531 879,816 12.763% 173,330 962,054 788,724 18.017%24 UMass Medical Center - Belmont St. 111,862 731,987 620,125 15.282% 165,844 695,837 529,993 23.834%25 Auburn Industrial Park-Canterbury St.-Southbridge St. 18,085 263,224 245,139 6.871% 36,755 499,434 462,679 7.359%26 Great Brook Valley - Lincoln St. 191,969 1,104,069 912,100 17.387% 249,516 912,523 663,007 27.344%27 Auburn Mall - Main St. 119,534 769,066 649,532 15.543% 154,118 721,246 567,128 21.368%29 Southbridge - Charlton 13,977 140,387 126,410 9.956% 12,198 122,505 110,307 9.957%30 West Boylston - Grove St. - West Boylston St. 92,643 1,324,484 1,231,841 6.995% 116,420 1,311,035 1,194,615 8.880%31 Lincoln Plaza - Park Ave. - West Boylston St. 100,991 1,083,087 982,096 9.324% 140,463 1,090,258 949,795 12.883%33 Brookfield - East Brookfield - Spencer - Leicester 46,682 353,755 307,073 13.196% 51,310 316,105 264,795 16.232%

ESS Elder Shopper Speical 1,165 18,625 17,460 6.255% 1,645 21,158 19,513 7.775%40 Downtown Hub Loop - - - - 18,450 197,551 179,101 9.339%

Total Worcester 1,706,570 15,012,067 13,305,497 11.368% 2,358,037 14,633,633 12,275,596 16.114%

Grand Total All Routes 2,042,456$ 20,021,679$ 17,979,223$ 10.201% 2,847,838$ 19,154,461$ 16,306,623$ 14.868%



CostsPassenger

FaresNet Cost of

Service CostsPassenger

FaresNet Cost of

ServiceAuburn:

Council on Aging 46,865$ 6,272$ 40,593$ 52,244$ 4,828$ 47,416$ Leicester Council on Aging 971 100 871 1,927 172 1,755 Oxford Council on Aging 3,074 374 2,700 1,742 163 1,579 Northborough Council on Aging 298 21 277 31 2 29 PBSI - Brokerage 27,529 1,714 25,815 30,742 30,742 CMTM - Van Division 93,463 3,668 89,795 65,100 2,591 62,509

172,200 12,149 160,051 151,786 7,756 144,030

Barre:South Central Massachusetts Elderbus, Inc. 30,068 2,663 27,405 31,371 1,639 29,732

Boylston:Northborough Council on Aging 1,531 108 1,423 4,160 228 3,932 Auburn Council on Aging - 15 1 14 PBSI - Brokerage 2,301 143 2,158 1,386 1,386 CMTM - Van Division 3,997 157 3,840 717 29 688

7,829 408 7,421 6,278 258 6,020

Brimfield:South Central Massachusetts Elderbus, Inc. 26,570 1,567 25,003 24,911 956 23,955


For The Years Ended June 30, 2020 and 20192020 2019

OTHER INFORMATION


DETAILS OF REGULAR DEMAND RESPONSE TRANSIT SERVICES BY COMMUNITY


CostsPassenger

FaresNet Cost of


FaresNet Cost of

Service



OTHER INFORMATION



Brookfield:South Central Massachusetts Elderbus, Inc. 16,688$ 1,793$ 14,895$ 20,215$ 1,092$ 19,123$ PBSI - Brokerage 4,381 273 4,108 3,014 3,014 CMTM - Van Division 2,613 103 2,510 827 33 794

23,682 2,169 21,513 24,056 1,125 22,931

Charlton:South Central Massachusetts Elderbus, Inc. 83,091 9,143 73,948 92,029 6,393 85,636 PBSI - Brokerage 2,201 137 2,064 1,074 1,074 CMTM - Van Division 4,919 193 4,726 441 18 423

90,211 9,473 80,738 93,544 6,411 87,133

Clinton:Council on Aging 62,344 5,761 56,583 58,659 5,597 53,062

Douglas:South Central Massachusetts Elderbus, Inc. 26,716 1,711 25,005 27,694 1,332 26,362

Dudley:South Central Massachusetts Elderbus, Inc. 89,125 10,372 78,753 90,149 7,354 82,795 PBSI - Brokerage 480 30 450 - CMTM - Van Division - 55 2 53

89,605 10,402 79,203 90,204 7,356 82,848


CostsPassenger

FaresNet Cost of


FaresNet Cost of

Service



OTHER INFORMATION



East Brookfield:South Central Massachusetts Elderbus, Inc. 6,551$ 521$ 6,030$ 8,530$ 340$ 8,190$ PBSI - Brokerage - 675 675

6,551 521 6,030 9,205 340 8,865 Grafton:

Council on Aging 26,281 2,938 23,343 25,808 3,527 22,281 Leicester Council on Aging - 42 4 38 PBSI - Brokerage 300 19 281 35 35 CMTM - Van Division 692 27 665 110 4 106

27,273 2,984 24,289 25,995 3,535 22,460

Holden:Council on Aging 46,382 2,319 44,063 46,756 3,490 43,266 Auburn Council on Aging - 15 1 14 Leicester Council on Aging - 42 4 38 Northborough Council on Aging - - Oxford Council on Aging 24 3 21 84 8 76 PBSI - Brokerage 25,899 6,231 19,668 20,764 6,058 14,706 CMTM - Van Division 11,576 743 10,833 4,406 269 4,137

83,881 9,296 74,585 72,067 9,830 62,237


CostsPassenger

FaresNet Cost of


FaresNet Cost of

Service



OTHER INFORMATION



Holland:South Central Massachusetts Elderbus, Inc. 14,815$ 804$ 14,011$ 14,320$ 643$ 13,677$

Leicester:Council on Aging 25,003 2,577 22,426 15,483 1,388 14,095 Auburn Council on Aging 20 3 17 60 6 54 Oxford Council on Aging 95 12 83 - West Boylston Council on Aging 26 3 23 - PBSI - Brokerage 15,265 950 14,315 9,387 9,387 CMTM - Van Division 24,672 968 23,704 7,442 296 7,146

65,081 4,513 60,568 32,372 1,690 30,682

Millbury:Council on Aging 85,582 16,219 69,363 96,211 23,693 72,518 Auburn Council on Aging - 15 1 14 Leicester Council on Aging - 63 6 57 PBSI - Brokerage 1,641 102 1,539 1,593 1,593 CMTM - Van Division 1,460 57 1,403 3,087 123 2,964

88,683 16,378 72,305 100,969 23,823 77,146

New Braintree:South Central Massachusetts Elderbus, Inc. 2,763 203 2,560 2,949 107 2,842


CostsPassenger

FaresNet Cost of


FaresNet Cost of

Service



OTHER INFORMATION



Northborough:Council on Aging 101,620$ 7,192$ 94,428$ 106,711$ 5,860$ 100,851$ Leicester Council on Aging 86 9$ 77 - West Boylston Council on Aging 26 3 23 284 24 260 CMTM - Van Division 77 3 74 - PBSI - Brokerage 400 25 375 1,195 1,195

102,209 7,232 94,977 108,190 5,884 102,306

North Brookfield:South Central Massachusetts Elderbus, Inc. 8,588 1,027 7,561 12,425 669 11,756

Oakham:South Central Massachusetts Elderbus, Inc. 6,651 611 6,040 10,560 563 9,997

Oxford:Council on Aging 24,016 2,920 21,096 20,130 1,881 18,249 Auburn Council on Aging 20 3 17 194 18 176 Leicester Council on Aging 171 18 153 293 26 267 Northborough Council on Aging 43 3 40 31 2 29 South Central Massachusetts Elderbus, Inc. - - PBSI - Brokerage 10,403 648 9,755 20,472 20,472 CMTM - Van Division 8,685 341 8,344 8,709 347 8,362

43,338 3,933 39,405 49,829 2,274 47,555


CostsPassenger

FaresNet Cost of


FaresNet Cost of

Service



OTHER INFORMATION



Paxton:Auburn Council on Aging -$ -$ -$ 45$ 4$ 41$ Leicester Council on Aging - - - 42 4 38 Oxford Council on Aging - - - 33 3 30 Northborough Council on Aging 43 3 40 - West Boylston Council on Aging 26 3 23 - CMTM - Van Division 307 12 295 2,205 88 2,117 PBSI - Brokerage 2,300 143 2,157 2,234 2,234

2,676 161 2,515 4,559 99 4,460

Princeton:South Central Massachusetts Elderbus, Inc. 15,128 1,484 13,644 8,674 1,156 7,518

Rutland:South Central Massachusetts Elderbus, Inc. 87,114 9,471 77,643 69,050 5,051 63,999


CostsPassenger

FaresNet Cost of


FaresNet Cost of

Service



OTHER INFORMATION



Shrewsbury:Council on Aging 67,929$ 8,757$ 59,172$ 96,495$ 17,752$ 78,743$ Auburn Council on Aging - - Leicester Council on Aging 171 18 153 63 6 57 Northborough Council on Aging 85 6 79 373 20 353 Oxford Council on Aging 71 9 62 17 2 15 West Boylston Council on Aging - 53 5 48 CMTM - Van Division 10,453 410 10,043 12,293 489 11,804 PBSI - Brokerage 8,223 512 7,711 8,192 8,192

86,932 9,712 77,220 117,486 18,274 99,212

Southbridge:South Central Massachusetts Elderbus, Inc. 355,451 56,589 298,862 306,177 48,713 257,464 Leicester Council on Aging 57 6 51 42 4 38 Oxford Council on Aging - 17 2 15 CMTM - Van Division 3,612 142 3,470 496 20 476 PBSI - Brokerage 860 54 806 1,455 1,455

359,980 56,791 303,189 308,187 48,739 259,448


CostsPassenger

FaresNet Cost of


FaresNet Cost of

Service



OTHER INFORMATION



Spencer:PBSI - Brokerage 11,604$ 722$ 10,882$ 15,449$ -$ 15,449$ Leicester Council on Aging 714 74 640 482 43 439 Oxford Council on Aging - 33 3 30 West Boylston Council on Aging 26 3 23 - CMTM - Van Division 10,453 410 10,043 8,213 327 7,886 South Central Massachusetts Elderbus, Inc. 128,858 20,152 108,706 128,245 16,255 111,990

151,655 21,361 130,294 152,422 16,628 135,794

Sturbridge:South Central Massachusetts Elderbus, Inc. 187,233 27,876 159,357 184,831 15,303 169,528

Sutton:South Central Massachusetts Elderbus, Inc. 46,236 3,238 42,998 47,296 2,376 44,920

Wales:South Central Massachusetts Elderbus, Inc. 696 48 648 2,762 97 2,665

Warren:South Central Massachusetts Elderbus, Inc. 71,888 7,903 63,985 60,131 4,993 55,138


CostsPassenger

FaresNet Cost of


FaresNet Cost of

Service



OTHER INFORMATION



Webster:PBSI - Brokerage 3,841$ 239$ 3,602$ 5,785$ -$ 5,785$ Auburn Council on Aging 20 3 17 75 7 68 Leicester Council on Aging 57 6 51 105 9 96 Oxford Council on Aging 381 46 335 368 34 334 CMTM - Van Division 5,073 199 4,874 2,425 97 2,328 South Central Massachusetts Elderbus, Inc. 193,904 32,460 161,444 143,165 17,752 125,413

203,276 32,953 170,323 151,923 17,899 134,024

Westborough:Northborough Council on Aging 6,931 491 6,440 7,172 394 6,778 CMTM - Van Division 77 3 74 - PBSI - Brokerage 80 5 75 139 139

7,088 499 6,589 7,311 394 6,917

West BoylstonCouncil on Aging 37,543 4,175 33,368 36,253 3,101 33,152 Auburn Council on Aging 20 3 17 - Leicester Council on Aging 57 6 51 63 6 57 Northborough Council on Aging 298 21 277 124 7 117 Oxford Council on Aging 71 9 62 - PBSI - Brokerage 7,182 447 6,735 3,966 3,966 CMTM - Van Division 23,673 929 22,744 21,167 842 20,325

68,844 5,590 63,254 61,573 3,956 57,617


CostsPassenger

FaresNet Cost of


FaresNet Cost of

Service



OTHER INFORMATION



West Brookfield:South Central Massachusetts Elderbus, Inc. 26,648$ 2,318$ 24,330$ 25,720$ 1,342$ 24,378$

Worcester:CMTM - Van Division 2,169,975 85,493 2,084,482 1,952,693 77,803 1,874,890 Auburn Council on Aging 4,463 598 3,865 9,610 888 8,722 Leicester Council on Aging 21,316 2,198 19,118 22,921 2,055 20,866 Northborough Council on Aging 30,189 2,137 28,052 22,541 1,238 21,303 Oxford Council on Aging 15,774 1,919 13,855 11,288 1,054 10,234 West Boylston Council on Aging 8,874 987 7,887 10,741 919 9,822 PBSI - Brokerage 695,750 47,225 648,525 712,830 5,601 707,229

2,946,341 140,557 2,805,784 2,742,624 89,558 2,653,066

Grand Total All Routes 5,240,793$ 413,767$ 4,827,026$ 4,891,933$ 307,653$ 4,584,280$

Note - The costs for the Auburn, Leicester, Northborough, Oxford (2020), and West Boylston Councils on Aging include $97,802 for 2020 and $87,080 for 2019 of costs from PBSI - Brokerage for scheduling and dispatching services. Revenues include funds from Federal and State Grants in 2020 of $233,018 and 2019 of $57,768 for eligible communities.



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